Slide 1: Third Quarter 2024 Financial Results
November 27, 2024 Third Quarter 2024 Financial Results
Slide 2: Welcome and Participants
Welcome and Participants Dr. Jeffrey Graves President & Chief Executive Officer Jeffrey Creech Executive Vice President & Chief Financial Officer Mick McCloskey Vice President, Treasury & Investor Relations To participate via phone, please dial: 1-201-689-8345 2
Slide 3: Forward Looking Statements
Forward Looking Statements Certain statements made in this presentation that are not statements of historical or current facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks, uncert
Slide 4: Dr. Jeffrey Graves
Dr. Jeffrey Graves President & Chief Executive Officer 4
Slide 5: Third Quarter Highlights
Third Quarter Highlights • Resilient materials utilization in a challenging macro ‒ Softness in new hardware systems sales continues ‒ Partially offset by strong growth YoY and QoQ in materials utilization across industry leading installed base ‒ Healthcare Solutions strength primarily driven by Den
Slide 6: Business & Technology Highlights
Business & Technology Highlights Offering the widest range of technology in the industry MJP 300W DMP 350 - EXT 800 PSLA Triple 270 Historic pace of innovation – bringing 25 new products and enhancements to market this year…and nearly 40 since Q3’23 Fig4 135 SLS300 SLS380 Recent announcements • Laun
Slide 7: Jeffrey Creech
Jeffrey Creech EVP & Chief Financial Officer 7
Slide 8: Third Quarter Revenue Summary
Third Quarter Revenue Summary ($ in millions) Healthcare Industrial Consolidated Solutions Solutions $71 $124 $113 $113 $52 $55 $64 $103 $45 $49 $57 $58 Q3’23 Q1’24 Q2’24 Q3’24 Q2’24 Q3’24 Q3’23 Q1’24 Q2’24 Q3’24 Q3’23 Q1’24 • HSG grew ~5% YoY & ~13% QoQ • ISG revenues declined ~19% YoY & • YoY reve
Slide 9: Gross Profit Margin
Gross Profit Margin (Non-GAAP) Non-GAAP Normalized Gross Margin Gross Margin Performance Drivers • Q3’24 gross margin includes ~$3 million headwind • Strong materials and services growth leveraging associated with increase in inventory reserves install base helped drive favorable mix • Partially off
Slide 10: Operating Expense
Operating Expense (Non-GAAP) ($ in millions) Operating Expense Drivers • QoQ improvement, as expected, primarily Expected driven by previously announced To Be restructuring initiative $64.2 $61.4 $55.8 Less Than • Prior year includes incentive $60 compensation tailwind and other benefits more one-ti
Slide 11: Earnings (Non-GAAP)
Earnings (Non-GAAP) ($ in millions, except per share amounts) Q3’23 Q3’24 Y/Y Adjusted EBITDA drivers Adj. EBITDA $4.7 ($14.3) ($19.1) • YoY decline primarily driven by lower revenue, margin and higher operating expense Non-GAAP • Prior year includes milestone recognition Diluted $0.01 ($0.12) ($0.1
Slide 12: Balance Sheet Highlights
Balance Sheet Highlights • Ended the quarter with $190 million of cash and cash equivalents • Significantly reduced QoQ burn with ~$3 million change in cash during Q3 • Expect inventory to continue as source of cash through at least end-of-year 12
Slide 13: 2024 Outlook
2024 Outlook ✓ FY’24 Revenues between the range of $440 million - $450 million ✓ Non-GAAP gross margin within the range of 38% - 40% ✓ Non-GAAP OpEx for the fourth quarter 2024 less than $60 million ✓ Sequential improvement in Adjusted EBITDA 13
Slide 14: Q&A Session
Q&A Session 1-201-689-8345 14
Slide 15: Thank You
Thank You Find out more at: www.3dsystems.com 15
Slide 16: Appendix
Appendix ©2024 3D Systems, Inc. | All Rights Reserved.
Slide 17: Presentation of Information
Presentation of Information 3D Systems reports its financial results in accordance with GAAP. Management also reviews and reports certain non-GAAP measures, including: non-GAAP gross profit, non-GAAP operating expense, non-GAAP gross profit margin, non-GAAP diluted income (loss) per share, and Adjus
Slide 18: Reconciliations of GAAP to Non-GAAP Measures: Gross Profit
Appendix 3D Systems Corporation Unaudited Reconciliations of GAAP to Non-GAAP Measures ‘Three and Nine Months Ended September 30, 2024, 2023 Gross Profit and Gross Profit Margin ‘Three Months Ended September 30, (in mitions) 2m 2023 Grow Prost CORE Grom Prone CNet Ganr So 4L7 3% SSSA 44% Amortizatio
Slide 19: Net Loss to Adjusted EBITDA
Appendix 3D Systems Corporation Unaudited Reconciliations of GAAP to Non-GAAP Measures Three and Nine Months Ended September 30, 2024, 2023 Net Loss to Adjusted EBITDA ( E & z & | Depreciation expense 46 Sa 14s 15.7 tes se EBITDA (1709) (82) (2005) G74) es Acquisition and divestiture-related expense
Slide 20: Diluted Loss per Share Reconciliation
Appendix 3D Systems Corporation Unaudited Reconciliations of GAAP to Non-GAAP Measures Three and Nine Months Ended September 30, 2024, 2023 Diluted Loss per Share ‘) (in dollars) 2024 2023 2024 2023 ‘Stock-based compensation expense 0.04 (0.02) 013 on Acquisition and divestiture-related expense _ (0